Tim Hortons Inc. (USA) (THI): Insiders Aren’t Crazy About It

Page 1 of 2

Is Tim Hortons Inc. (USA) (NYSE:THI) a buy, sell, or hold? The best stock pickers are turning less bullish. The number of bullish hedge fund positions stayed the same which is a slightly negative development in our experience

Tim Hortons Inc.To most traders, hedge funds are seen as underperforming, old investment vehicles of the past. While there are greater than 8000 funds with their doors open at the moment, we hone in on the elite of this group, about 450 funds. It is estimated that this group has its hands on the majority of the smart money’s total asset base, and by tracking their best stock picks, we have deciphered a number of investment strategies that have historically outpaced the broader indices. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points per year for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have outpaced the S&P 500 index by 23.3 percentage points in 8 months (see the details here).

Just as important, bullish insider trading sentiment is a second way to parse down the world of equities. Just as you’d expect, there are a number of incentives for an upper level exec to drop shares of his or her company, but just one, very clear reason why they would behave bullishly. Plenty of empirical studies have demonstrated the market-beating potential of this tactic if you know what to do (learn more here).

With all of this in mind, we’re going to take a look at the recent action surrounding Tim Hortons Inc. (USA) (NYSE:THI).

How have hedgies been trading Tim Hortons Inc. (USA) (NYSE:THI)?

Heading into Q2, a total of 11 of the hedge funds we track were bullish in this stock, a change of 0% from the first quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were increasing their stakes significantly.

According to our comprehensive database, Highfields Capital Management, managed by Jonathon Jacobson, holds the biggest position in Tim Hortons Inc. (USA) (NYSE:THI). Highfields Capital Management has a $330.5 million position in the stock, comprising 3% of its 13F portfolio. On Highfields Capital Management’s heels is Luxor Capital Group, managed by Christian Leone, which held a $153.5 million position; the fund has 2.9% of its 13F portfolio invested in the stock. Some other hedgies with similar optimism include James Crichton and Adam Weiss’s Scout Capital Management, Frank Brosens’s Taconic Capital and Jim Simons’s Renaissance Technologies.

Due to the fact that Tim Hortons Inc. (USA) (NYSE:THI) has faced bearish sentiment from the entirety of the hedge funds we track, it’s safe to say that there were a few money managers who sold off their positions entirely heading into Q2. Intriguingly, Glenn Russell Dubin’s Highbridge Capital Management sold off the biggest investment of the “upper crust” of funds we watch, valued at close to $0.6 million in stock., and Matthew Tewksbury of Stevens Capital Management was right behind this move, as the fund cut about $0.5 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

How are insiders trading Tim Hortons Inc. (USA) (NYSE:THI)?

Bullish insider trading is best served when the company in question has seen transactions within the past six months. Over the last six-month time period, Tim Hortons Inc. (USA) (NYSE:THI) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

Let’s go over hedge fund and insider activity in other stocks similar to Tim Hortons Inc. (USA) (NYSE:THI). These stocks are Domino’s Pizza, Inc. (NYSE:DPZ), Dunkin Brands Group Inc (NASDAQ:DNKN), Darden Restaurants, Inc. (NYSE:DRI), Burger King Worldwide Inc (NYSE:BKW), and Chipotle Mexican Grill, Inc. (NYSE:CMG). This group of stocks are in the restaurants industry and their market caps are similar to THI’s market cap.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Countries with the Highest Suicide Rates

The 10 Most Technologically Advanced Countries in the World

The 10 Safest Countries in the World to Live in Peace

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!